The PSG presents a catastrophic balance sheet. Even worse than expected, but Nasser Al-Khelaïfi purposely widened the club’s deficit!
Paris Saint-Germain is, like other French clubs, finalizing the closing of its accounts for the 2021-2022 season. The result is likely to be less than rosy from an accounting point of view, since a record deficit is announced. L’Equipe confirms this Saturday the figures recently published in Le Parisien, namely that the PSG will announce losses of 370 million euros. This balance sheet necessarily calls out but it will nevertheless be sent to the DNCG, which must report the accounts of all the French clubs.
A bigger deficit than expected
These are record losses for PSG, and an even more negative balance sheet than expected, since it was to be at the start of 200 to 300 million. This while cash receipts are once again on the rise, thanks to the many sponsors, winnings and partners who brought in 660 million euros. Added to this is the amount recovered on transfers, to reach 700 million euros. But it is mainly the payroll that weighs on Parisian accounts, especially since during the 2021-2022 season, PSG decided to pay in advance a very large part of the salary that Kylian Mbappé will receive in 2022-2023. A sleight of hand which has an explanation, even if it may surprise to see the Qatari leaders pass the biggest salary of the workforce into the accounts of the previous year.
📸 @KMbappe and Leo Messi! ❤️💙 https://t.co/U6NlaNuNj4 pic.twitter.com/WEhskkcVhB
— Paris Saint Germain (@PSG_inside) October 28, 2022
The explanation is simple: the goal is to lighten the bill for the 2022-2023 season, during which PSG is closely followed by UEFA and threatened with a record fine of 55 million euros in the event of non-compliance. – compliance with its financial commitments. But this was not the case during the 2021-2022 season, still considered complex in the post-Covid year, and for which the authorized deficit was not capped. As a result, Nasser Al-Khelaïfi took the opportunity to let go and voluntarily widen the deficit by putting a good part of Kylian Mbappé’s new salary into it. A perfectly legal trick but which will greatly reduce the wage bill in 2022-2023, where the finances of PSG will be closely monitored.
PSG is dribbling UEFA, it’s allowed!
A tactic of which PSG is not the only user, since L’Equipe claims that Manchester United, Inter Milan and Juventus Turin have done the same. With a good part of Mbappé’s salary less to pay and revenues up and expected to reach 800 million euros in 2023, Paris SG aims to return to the nails of financial fair play by reducing its deficit to 60 million euros. euros at most. On top of that, PSG will have to respect the new version of financial fair play, where the wage bill must not exceed 70% of income from 2025-2026. With these tricks, the CVC and the new sponsors, Paris SG is in any case convinced of being able to escape new sanctions. At least for the current fiscal year.